The summer months seem to be the “catch all” for everything I’m planning to do.
In February, I frequently find myself saying things like, “This summer we are going to clean that garage AND go through all of our closets and donating everything we haven’t used in at least a year.” I can almost hear my husband groan internally!
Business is often the same. Many CEOs, CFOs, and directors of development with whom I speak are often guilty of the same mantra. They will say to me: “this summer we really are going to register our charity.”
Their intentions are great! But sometimes – akin to the cleaning of closets and garages – life interferes.
The beauty of these conversations, however, is that many CEOs, CFOs, and directors of development understand that failure to register their charity while they are soliciting dollars is against the law.
The officials in the 40 states and Washington, D.C. that require nonprofit charitable registration are beginning to assume a more strict posture against nonprofit organizations that fail to register. If your organization is soliciting (fundraising) in states that require registration, it’s a good idea to register as soon as possible, if you have not already done so.
Ramifications for failing to register can include:
- Cease and desist order for your fundraising efforts
- Board and staff members may be required to pay the financial penalties associated with failing to register
- Retroactive fines and fees in certain states
- Most notably, no organization whose mission is to serve others wants to have to divert funds to pay fines for something that was avoidable in the first place. One executive revealed to me that his board of directors was so embarrassed and disgusted by the organization’s lapse in judgment for failing to register that more than half of the board members resigned. The hit to the organization’s reputation in the community was costly.
It’s important to take nonprofit charitable registration seriously!
This summer, I decided to bite the bullet. I hired a professional organizer to tackle our closets and I hired the young man down the street to clean our garage! Sometimes it is good to recognize other people’s areas of expertise and to lean on them to get things accomplished.
In a similar way, that’s where Capstone Charity Resources can partner with non-profits to help them register their charity – so they can get back to doing what they do best: running their charity and fundraising! We leave you more time to do more good!
This summer, let us help you accomplish those summer charity registration plans…before the calendar flips to February again!
If I can be of assistance, don’t hesitate to contact me!